Smiths Industries Aerospace launches online suppliers auction with SynerDeal.

Smiths Industries Aerospace announced the launch of their e-commerce procurement online auction, commencing with European suppliers bidding on packages of machined components. The first auction was held on the 19th July 2000, and will result in a significant cost savings. Subsequent online auctions are planned, as part of the Aerospace Group's development of strategic procurement initiatives with its global supply chain.

The principle of the auction is to link a group of suppliers on the Internet, who then bid for packages of work in a real time environment. Each supplier can see the current price on-line and is able to make their own decision on their next bid in full knowledge of both the market price for this work and their own competitiveness. The machined components from these suppliers are used for the manufacture of Vehicle Management, Information Management and Detection and Protection Systems products.

Tim Aston, Group Purchasing Manager with Smiths Industries commented:
"It was interesting to see existing and potential new suppliers competing for the work in a completely open environment. We were pleased to confirm that some of our items are already being purchased at competitive prices, yet others could be bought for significantly less than we have been paying."

SynerDeal worked with Smiths Industries to construct the auction and train the suppliers in the use of e-commerce. David Bundred, with SynerDeal said, "The key to the success of this on-line auction was the preparatory work in ensuring a good mix of suppliers who had demonstrated their ability to compete and who were well trained in the e-commerce procedures. We are looking forward to continuing to work with Smiths Industries on future auctions."

Smiths Industries Aerospace is a world leader in advanced aerospace electronics for military and civil aircraft. It has design, development and manufacturing facilities in the United Kingdom and the United States, and includes Lockheed Martin, Airbus, BAE Systems, Boeing, the US Department of Defence and the UK Ministry of Defence among its major customers. Last year, Smiths Industries Aerospace earned profits of $160M on sales of $856M. In addition to Aerospace, Smiths Industries is a technology leader in medical systems and specialized industrial products.